Additional measures needed to reach climate targets
Press release, December 8, 2023
Even if all countries keep their climate commitments, global emissions are still too high, falling short of the goal to limit global warming below 1.5°C.
One of the conclusions of McKinsey's "Global Energy Perspective 2023" report is that global emissions are expected to peak in the mid-2020s. However, this is not enough for staying within the 1.5°C limit.
"Our forecasts suggest that warming can be expected to be between 1.6°C and 2.9°C. This signals an urgent need for increased global action," says Jukka Maksimainen, senior partner at McKinsey’s Helsinki office and the global co-leader of the Global Energy & Materials practice.
Solar and wind power in a central position
The report provides a comprehensive overview of the global energy sector, analyzing various industries, fuel types and geographies.
The global demand for electricity is expected to more than double by 2050. In this significant electrification of energy consumption, renewable energy will play a leading role. The share of renewable energy will constitute 45-50% of electricity production by 2030, potentially rising to 65-85% by 2050.
In all scenarios of the report, solar power emerges as the largest source of renewable energy, followed by wind power.
The demand for gas is projected to increase until 2040
According to the report, the world will probably see a peak in demand for fossil fuels by 2030. Total natural gas demand to 2040 is projected to increase. This is partly influenced by the need to support and balance electricity production based on renewable energy sources.
"How the demand for gas and fossil fuels develops depends on how quickly we electrify and switch to renewable electricity. Electrification specifically will play a key role in reducing emissions," concludes Maksimainen.
Read McKinsey's "Global Energy Perspective 2023".
Press contact
Mari Muoniovaara
External Relations Specialist
+358 40 728 1550
mari_muoniovaara@mckinsey.com
About McKinsey & Company
McKinsey is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next. www.mckinsey.com
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